Tax Type
Individual Income Tax
Description
Assessment adjustment
Topic
Taxpayers' Remedies
Date Issued
09-09-1985
September 9, 1985
Re: Virginia Code Section 58.1-1821 Application
Individual Income Tax
Dear ****
This is in reply to your letter of June 3, 1985 in which you submit an application for correction of the assessment of individual income tax for taxable year 1983.
FACTS
On December 26, 1983 you mailed a check to the Department of Taxation, noting on the face of the check, that it was to be applied to 1983 estimated income tax. However, this check was instead applied to an outstanding assessment you had for taxable year 1982. You later filed your 1983 Virginia individual income tax return on October 15, 1984 claiming this payment as part of your total estimated income tax payments for 1983. Since the return was filed past the due date and the estimated payments claimed by you were more than the amount shown in the department's records, an assessment was issued for additional tax, penalties for late filing, late payment and underpayment of estimated income tax and interest.
You protest the assessment of penalties and interest and ask that they be abated.
DETERMINATION
An examination of a copy of the check in question reveals that it was designated to be applied to 1983 estimated income tax. However, even if the department had credited your December 1983 payment to your 1983 estimated income tax account, you would have still been liable for penalties for late filing and late payment and interest. This is because you filed your return after the due date (May 1, 1984) without requesting an extension of time to file from the department.
In reviewing your return, the department has discovered that you incorrectly reported the amount of federal adjusted gross income from your federal income tax return. When this correction is made to the amount of federal adjusted gross income reported on your Virginia return and the full amount of estimated payments are allowed, your 1983 tax is less than the amount of estimated payments made. Therefore, the late filing penalty, late payment penalty and interest charge, is inapplicable.
The department will relieve you of any additional charges for taxable year 1983 and refund the overpayment based on the correction made to your federal adjusted gross income. The amount of your 1984 overpayment that has been applied to the assessment for 1983 will be reapplied to taxable year 1982 and the difference credited to your 1985 estimated account.
The attached worksheet shows how the department arrived at the amount of 1983 refund and 1984 overpayment to be credited to your 1985 estimated account. If after examining the worksheet you have any questions, contact this office.
Sincerely,
W. H. Forst
Tax Commissioner
Re: Virginia Code Section 58.1-1821 Application
Individual Income Tax
Dear ****
This is in reply to your letter of June 3, 1985 in which you submit an application for correction of the assessment of individual income tax for taxable year 1983.
FACTS
On December 26, 1983 you mailed a check to the Department of Taxation, noting on the face of the check, that it was to be applied to 1983 estimated income tax. However, this check was instead applied to an outstanding assessment you had for taxable year 1982. You later filed your 1983 Virginia individual income tax return on October 15, 1984 claiming this payment as part of your total estimated income tax payments for 1983. Since the return was filed past the due date and the estimated payments claimed by you were more than the amount shown in the department's records, an assessment was issued for additional tax, penalties for late filing, late payment and underpayment of estimated income tax and interest.
You protest the assessment of penalties and interest and ask that they be abated.
DETERMINATION
An examination of a copy of the check in question reveals that it was designated to be applied to 1983 estimated income tax. However, even if the department had credited your December 1983 payment to your 1983 estimated income tax account, you would have still been liable for penalties for late filing and late payment and interest. This is because you filed your return after the due date (May 1, 1984) without requesting an extension of time to file from the department.
In reviewing your return, the department has discovered that you incorrectly reported the amount of federal adjusted gross income from your federal income tax return. When this correction is made to the amount of federal adjusted gross income reported on your Virginia return and the full amount of estimated payments are allowed, your 1983 tax is less than the amount of estimated payments made. Therefore, the late filing penalty, late payment penalty and interest charge, is inapplicable.
The department will relieve you of any additional charges for taxable year 1983 and refund the overpayment based on the correction made to your federal adjusted gross income. The amount of your 1984 overpayment that has been applied to the assessment for 1983 will be reapplied to taxable year 1982 and the difference credited to your 1985 estimated account.
The attached worksheet shows how the department arrived at the amount of 1983 refund and 1984 overpayment to be credited to your 1985 estimated account. If after examining the worksheet you have any questions, contact this office.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner